Institutional investors will be allowed to trade in commodities- SEBI

sebiInstitutional investors will be permitted to trade in commodities, said SEBI outgoing Chairman, UK Sinha, while addressing at the International Commodity Derivatives Conference in Mumbai.

Institutional investors such as mutual funds, (MF) foreign portfolio investors (FPT), banks and insurance companies will be allowed to trade in the commodity market.   MFs will be the first to get the permission to trade in commodity, while SEBI is waiting for RBI’s nod before permitting banks to enter the commodity market.

Sinha also said that new products like options on futures will be introduced and the Securities Contract Regulation Act needs to be revised accordingly. The Finance Ministry is working on the legal structure for options trading and the amendments will be taken to the Parliament, if required.